Putting together a construction bid takes time. You have to go through blueprints, take measurements, calculate labor and also calculate the cost of materials. It’s how construction companies get their work and it’s a process that needs to be done well. However, missing the mark, even by a little can cost you a lot of business throughout the year. Here are some tips on how to make your bid more competitive:

  1. Work with subcontractors: Instead of guessing what a subcontractor would charger for their portion of the work, contact them and ask for a bid. While this may mean you have to wait a bit longer, it does allow you to get a more accurate estimate from the people who do this work every day.
  2. Try to minimize rounding up: If you estimate that you need a certain amount of wood, and then you round up, and then multiply that by a rounded-up cost of wood and then round that price up, you are going to end up with an estimate that is 10-20% more expensive than it should be. While that may not seem like much, you need to be as accurate as possible in your bid so that your prices are competitive.
  3. Add timeframes: One thing clients really appreciate is timeframes. If you have a good team and can deliver the project in 3 months, the client will appreciate that prediction, especially if others have not provided one or have said they will need longer to get the same job done.
  4. Provide cost-saving options: There are options available that may save the client some money. One example is if they cover the cost of materials themselves, which includes the ordering. While you lose the profit in marking it up, you are still making a good profit margin on the labor costs and your client is appreciating the savings on the materials.
  5. Add services: What are the clients struggling to get right now either because of time or shortages? What if there was a service or two that you can provide that will take the stress off of them? This would give you an advantage in your bid, even if you do not have the lowest prices.

A competitive bid does not necessarily mean you have to have the cheapest price. Instead, focus on being accurate in pricing but deliver on higher expectations. This will make whatever your price is much more competitive.